Discover safe tax haven with Seychelles company formation
Tax havens are locations where the rates are extremely low or sometimes nil. Seychelles levies no taxes on an offshore company, which encourages rich individuals and firms to establish their presence in this island. When you consider Seychelles company formation, you will need to bear in mind that you will not be able to conduct business activities within this jurisdiction. Such entities are commonly referred to as international business companies or non-resident companies.
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Advantages
When an individual or a business enterprise forms a company in Seychelles, there are several advantages. The entities can be structured in such a manner where the profits realized from regular business activities are exempt from huge tax liabilities. This results in savings the company resources that would be payable as taxes, which can be diverted to other activities to increase sales and grow profit margins. The rules and regulations guiding the incorporation of offshore businesses are very simple and maintaining is also easy, which makes it possible for most people to setup a presence here. The exception to this rule regulated businesses, such as banks and other financial institutions.
The reporting norms are not stringent; however, these may vary as the requirements of the registrar of companies are different in every jurisdiction. Offshore entities set up in Seychelles are structured in a way that ensures the company assets are protected from any liabilities that may arise in the future. By conducting the business in the name of a private company, it becomes easier to keep the name/s of underlying principal/s anonymous. The regulations guiding Seychelles company formation allow for thin capitalization making it possible to incorporate an entity with nominal equity. Moreover, international business companies are not prohibited from offering financial assistance for the acquisition of their shares, which eliminates the need to adopt whitewash procedures otherwise used to carry out such transactions.
Disadvantages
An international business company cannot conduct business in the same jurisdiction where it is incorporated, which can possibly be a limiting factor. Moreover, such entities are prohibited from investing and owing in real estate. Some regulatory restrictions control the kind of businesses that can be engaged in by a non-resident company in Seychelles. It is common for controlling activities, such as banking, insurance, and operating as trust companies when entities are desirous of incorporating offshore entities in this island. As the publicly available information is the bare minimum, it creates a high level of hidden costs at the administrative levels. Some countries adopt anti-tax haven regulations, which make it tough to do business here.
Features
The fundamental documents for the existence of an offshore company include the articles and memorandum of association. Certificate of incorporation issued by the ROC to prove the existence of the business entity is needed. For official communications with the ROC, appointing a registered agent is common. Providing local registered office address to receive official communication is mandatory. Members are the legal owners and for anonymity they can appoint nominees. Directors are appointed to manage the daily affairs of the international business company.
Tax havens are locations where the rates are extremely low or sometimes nil. Seychelles levies no taxes on an offshore company, which encourages rich individuals and firms to establish their presence in this island. When you consider Seychelles company formation, you will need to bear in mind that you will not be able to conduct business activities within this jurisdiction. Such entities are commonly referred to as international business companies or non-resident companies.
[video=youtube;aQvBpx-KXJc]
When an individual or a business enterprise forms a company in Seychelles, there are several advantages. The entities can be structured in such a manner where the profits realized from regular business activities are exempt from huge tax liabilities. This results in savings the company resources that would be payable as taxes, which can be diverted to other activities to increase sales and grow profit margins. The rules and regulations guiding the incorporation of offshore businesses are very simple and maintaining is also easy, which makes it possible for most people to setup a presence here. The exception to this rule regulated businesses, such as banks and other financial institutions.
The reporting norms are not stringent; however, these may vary as the requirements of the registrar of companies are different in every jurisdiction. Offshore entities set up in Seychelles are structured in a way that ensures the company assets are protected from any liabilities that may arise in the future. By conducting the business in the name of a private company, it becomes easier to keep the name/s of underlying principal/s anonymous. The regulations guiding Seychelles company formation allow for thin capitalization making it possible to incorporate an entity with nominal equity. Moreover, international business companies are not prohibited from offering financial assistance for the acquisition of their shares, which eliminates the need to adopt whitewash procedures otherwise used to carry out such transactions.
Disadvantages
An international business company cannot conduct business in the same jurisdiction where it is incorporated, which can possibly be a limiting factor. Moreover, such entities are prohibited from investing and owing in real estate. Some regulatory restrictions control the kind of businesses that can be engaged in by a non-resident company in Seychelles. It is common for controlling activities, such as banking, insurance, and operating as trust companies when entities are desirous of incorporating offshore entities in this island. As the publicly available information is the bare minimum, it creates a high level of hidden costs at the administrative levels. Some countries adopt anti-tax haven regulations, which make it tough to do business here.
Features
The fundamental documents for the existence of an offshore company include the articles and memorandum of association. Certificate of incorporation issued by the ROC to prove the existence of the business entity is needed. For official communications with the ROC, appointing a registered agent is common. Providing local registered office address to receive official communication is mandatory. Members are the legal owners and for anonymity they can appoint nominees. Directors are appointed to manage the daily affairs of the international business company.
